Press Release|Seed Funding|Fintech

[Press Release] Arro Announces $10M Seed Funding to Democratize Credit

Arro is transforming the credit industry by offering consumers access to low-interest credit, regardless of background, with the ability to grow their credit responsibly as they learn, save, budget, and set goals.

Author: Arro Team

October 11, 2022|Press Release

[Press Release] Arro Announces $10M Seed Funding to Democratize Credit hero image

LOS ANGELES, CA, October 11, 2022 – Los Angeles-based fintech company Arro ( announced today the closing of $10M in Seed funding led by Crosslink Capital with participation from Bling Capital, BAM Ventures, Global Founders Capital and WTI, among others. These investors have previously backed companies such as Chime, Facebook, Honey, and NerdWallet.

Arro is a credit platform that empowers U.S. consumers to grow their credit through financial literacy training and behavioral science incentives. Arro aims to approve nearly any U.S. consumer for its low interest credit card, regardless of credit history, based on income and other alternative data.

By using a proprietary underwriting model instead of relying on credit scores, Arro is disrupting the traditional FICO system and providing fair access to consumers who otherwise wouldn’t qualify. Arro’s customer-first approach and partnership with Equifax has resulted in a special designation to not require a hard credit inquiry, meaning that applying for an Arro Card has no impact on someone’s credit score. 

Through a gamified app experience, users can increase their credit lines and decrease interest rates by completing personal finance activities on how to use credit responsibly, reach savings goals, budget effectively, and more. While most lenders only look at someone’s past, Arro is focused on the present, setting consumers up to be successful and empowering them to manage a growing credit line.

“Many financial institutions make money from people overspending or going into debt,” says Ryan Duitch, Co-founder and CEO at Arro. “Arro is the only credit platform that addresses a major root of financial hardship: lack of financial literacy. While many financial apps cover up short-term symptoms of debt and profit from high interest and hidden fees, we are proud that Arro does something transformative: we focus on building knowledge and habits to heal people’s relationships with money for life.” 

In 2022, 72% of Americans had some or very little confidence in financial institutions according to a Gallup survey.

“The majority of consumers are skeptical about lenders, not just those with poor or no credit,” says Luke Pelullo, Co-founder and COO at Arro. “Over 150 million people are locked out of mainstream credit, and the truth is that lenders are incentivized to promote overborrowing. We are truly turning the predatory lending model on its head and putting consumers and their financial health first.” 

Arro believes everyone deserves fair access but Americans with low or no credit scores face a different reality:

• 53% of Americans have been rejected for a credit card or loan to poor credit.

• “Fair” credit score borrowers pay 2x more interest than “very good.”

• Between interest rates and fees, APRs can range up to 700% across multiple loan products.

“For far too long many American families have been shut out of the financial system due to various factors that have negatively impacted their creditworthiness,” says Chris Campbell, Arro Advisor and Former Assistant Secretary of the US Department of Treasury. “This lack of access to basic credit has a dramatic negative impact on their daily lives. This reality needs to change which is why I’m proud to be part of the solution at Arro that will not only unlock a system that they have been on the outside of but will also teach them the tools to spend, save, and pay wisely.”

Instead of just being solely a spending card, Arro plays an active role in improving financial wellness for its members through education, goal setting, credit building, and other positive financial habits.

“Arro is completely different from any other financial app on the market,” says David Silverman, Partner at Crosslink Capital. “Most importantly, Arro provides opportunity and helps Americans become more financially healthy.” 

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About Arro

Founded in 2021, Arro ( is a Los Angeles-based fintech company democratizing access to credit. Arro provides a low-interest credit card and financial literacy app that empower consumers to grow their credit lines at better rates while building personal finance skills that set them up to be successful. By leveraging alternative data to approve consumers, Arro can extend credit to the millions of Americans shut out of the mainstream financial system, providing a path toward a financially healthy future.